The number of jobs created in December declined from the excellent November result on a seasonally adjusted basis. Net job creation in December declined to 145,000 from November’s exceptional result of 256,000. October and November were both revised down by 10,000. Rising employment and wages are the main contributors to GDP growth because personal consumption […]
As the laws of economics have proven time and again, supply and demand will determine whether steel prices continue to rise in 2020. Demand is set by the marketplace; supply can be controlled by producers. Steel Market Update canvassed the market this week, asking readers: Has enough flat rolled capacity been removed to keep prices […]
By CRU Analyst James Campbell, from the Steel Sheet Products Market Outlook 2019 was a bad year for the steel industry. Prices and margins collapsed and, outside of China, demand contracted. However, the combination of a new restocking cycle and reduced output in many markets allowed producers to raise prices and margins at the end […]
As widely expected, Nucor was the first to announce another $40 increase in flat rolled steel prices Wednesday, followed closely by ArcelorMittal USA, NLMK USA, California Steel Industries, USS-POSCO Industries and Algoma Steel. This represents the fifth round of price hikes by the major mills since late October totaling around $190 per ton. In a […]
Flack Global Metals has hired metals industry veteran Ben Markham as chief commercial officer. Markham brings 30 years of senior management experience to FGM and will play a key role in the leadership, design and execution of the company’s commercial development activities and corporate branding. Markham, a veteran of the U.S. Air Force, has extensive […]
By CRU Analysts, from CRU’s Bulk Ferroalloys Monitor U.S. finished steel prices have risen following price increase announcements that found support from service center restocking. Adding to this price support was the scrap market, where scarcer supply and increased mill demand put prices on an upward trajectory. Some steel products have enjoyed quicker price gains […]
A recent study by the Federal Reserve concludes that the Trump administration tariffs are doing more harm than good to the U.S. economy and manufacturing. Federal economists Aaron Flaaen and Justin Pierce examined the impact the “unprecedented” number of tariffs imposed under the Trump administration have had on the U.S. manufacturing sector. Escalation of tariff […]
At the end of August, Steel Market Update will host our 10th SMU Steel Summit Conference. Our conference will be the largest flat rolled and plate steel event in North America during this calendar year. The 2020 SMU Steel Summit Conference is going to be our best attended and most informative conference yet as 1,200 […]
At the end of August, Steel Market Update will host our 10th SMU Steel Summit Conference. Our conference will be the largest flat rolled and plate steel event in North America during this calendar year. The 2020 SMU Steel Summit Conference is going to be our best attended and most informative conference yet as 1,200 […]
Edmunds analysts estimate auto sales will top 4.3 million in the fourth quarter of 2019, pushing the total for the year to 17.1 million and the fifth year in a row above the 17 million mark. “The fact that new car sales have stayed this strong for this long really defies the odds, especially given […]
About half of the nations surveyed by J.P Morgan and IHS Markit ended the year with manufacturing PMIs in contraction, with conditions especially poor in the Eurozone. The J.P. Morgan Global Manufacturing PMI fell to 50.1 last month from 50.3 in November indicating business conditions remained weak at the end of 2019. The intermediate and […]
By CRU Chief Economist Jumana Saleheen, from the CRU Steel Sheet Products Market Outlook Global Economic Outlook: 2019 has been an eventful year. Many decisions were taken, including tariffs and monetary policy easing. Other decisions were put-off, such as Brexit and auto tariffs. Looking back to our expectations at the start of 2019, four things […]
Fitch Ratings, a global leader in credit ratings and research, is forecasting a negative outlook for the global steel industry in 2020 and challenging conditions in North America. The Fitch Ratings 2020 Outlook: Global Steel notes weaker economic growth impacted by ongoing trade and geopolitical tensions. “Over the past two years companies have talked at […]
By CRU Analyst Sam Grant, from CRU’s Zinc Monitor The North American market (U.S., Canada and Mexico) accounts for approximately 9.6 percent of global refined zinc demand. This year, we have seen a sharp slowdown in both global trade and industrial production, with the North American region experiencing its slowest rate of IP growth since […]
All the laid off auto workers were back on the job at the beginning of November following the GM strike and restarts at the auto plans reportedly went smoothly. This analysis is based on data from LMC Automotive for automotive assemblies in the U.S., Canada and Mexico. The breakdown of assemblies is “Personal” (cars for […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: Last week was one of the most eventful for trade this year: USMCA Agreement Editor’s note: The House voted to pass the USMCA earlier today. The Senate is unlikely to vote on the measure before completion of the […]
By CRU Prices Analyst George Pearson, from the CRU Steel Sheet Products Monitor Sheet prices in the U.S. were mixed this week. HR coil at $555 was steady w/w, falling by $2 /s.ton, while CR and HDG coil products gained $26-30 /s.ton w/w after steadying last week. For HR coil, overall volume has picked back […]
By CRU North America Senior Analyst Ryan McKinley, from CRU’s Steel Metallics Monitor The CRU metallics price indicator (CRUmpi) rose by 7.9 percent m/m to 211.1 (see chart) following price increases in nearly every market. Pervasive market tightness caused by adverse weather and higher domestic demand in major exporting markets forced buyers in import-reliant markets to accept higher […]
The popular press often gets overly excited or depressed by a single month’s employment report, but November really was an exceptional month. Net job creation in November increased to 266,000 following upwardly revised results for September and October. September was revised up by 13,000 and October by 28,000. Rising employment and wages are the main […]
Samuel Associated Tube Group announced it will invest $29 million to build a new manufacturing facility in Jefferson County, Ala. Samuel Associated Tube, a division of Canada’s Samuel, Son & Co., is a manufacturer of small-diameter, electric-resistance-welded and fabricated carbon tubing. The new warehouse will total 284,000 square feet and is expected to be operational […]
Total light vehicle sales are likely to reach 17.1 million units this year, down 1.4 percent from 2018 and above 17 million for the fifth straight year, says J.D. Power and LMC Automotive. As usual, sales were strongest for SUVs and trucks. U.S. auto sales rose for most foreign automakers during November. Toyota sales increased […]
The United Auto Workers and Fiat Chrysler Automotive reached a tentative labor agreement over the holiday weekend. The four-year agreement includes $9 billion of investments by the company that will add 7,900 jobs during the contract period, said the UAW in a press statement. Other terms of the contract are confidential until members are informed. […]
Irrespective of the GM strike, light vehicle assemblies in North America slowed through October. This report is based on data from LMC Automotive for automotive assemblies in the U.S., Canada and Mexico. The breakdown of assemblies is “Personal” (cars for personal use) and “Commercial” (light vehicles less than 6.0 tonnes gross vehicle weight rating). Heavy […]
The slowdown in the energy sector has resulted in the closing of a nearly 50-year-old plant. TimkenSteel, headquartered in Canton, Ohio, announced it will close its TimkenSteel Material Services facility in Houston. “We are focusing on our core strengths of making and heat treating steel and more fully utilizing our supply chain to provide the […]
Metalforming companies reported continued weakness in the market in the latest survey by the Precision Metalforming Association. The PMA November 2019 Business Conditions Report showed 34 percent of participants expect a decline in economic activity and 51 percent expect no change. “The November PMA Business Conditions Report showed little change from the previous month. Metalforming […]
So, tonight I thought I would write about a couple of text messages that I received over the past 24 hours. Both messages have to do with steel prices, just looking at information out of SMU and other publications or indices differently. The first message was from the president of a Midwest-based service center. They […]
United Auto Workers have ratified a new four-year contract with Ford with the approval by 56.3 percent of union members. The new contract includes a $9,000 signing bonus for full-time workers, performance bonuses, two 3 percent annual raises and two 4 percent lump sum payments. Health care costs remain unchanged. “Every Ford employee and temporary […]
Change and growth, both personal and professional, were the dominant topics at the 2019 Annual Conference of the Association of Women in the Metal Industries, held in San Antonio Nov. 6-9. Beginning with a workshop by Asbury Group CEO Kailei Carr—”Unveil Your Most Powerful Self”—and ending with Anne Phelon, CEO at Merrett Davies International—”Moving from […]
ArcelorMittal reported a third-quarter net loss of $539 million—its second quarterly loss in a row as the global steel and mining company faced lower shipments and weak steel prices in markets all over the world. “As anticipated, we continued to face tough market conditions in the third quarter, characterized by low steel prices coupled with […]
By CRU Principal Analyst Chris Asgill There has been a marked rise in Chinese imports of pig iron and HBI this year. This has been primarily due to limited domestic scrap supply that cannot be offset by external supply due to restrictions in scrap imports. Limited scrap supply relative to demand has meant that scrap prices in […]